Proactive Investors - Apple Inc (NASDAQ:AAPL, ETR:APC) remains a “top pick” for analysts at Bank of America (NYSE:BAC) who expect the introduction of AI phones, known as IntelliPhones, to spur a once-in-a-decade upgrade event.
“With an installed base of over 4 billion smartphones, we see the opportunity for the next upgrade cycle to be a once-in-a-decade type of event,” they wrote.
They expect the adoption curve of AI iPhones to be faster than the adoption of smartphones.
IntelliPhones are seen dominating edge AI compared to AI PCs due to their portability, ubiquity, integrated sensors such as GPS, voice assistants, immediate data capture like facial recognition and cost.
“IntelliPhones will leverage advanced machine learning and AI technologies to offer superior personal assistance, language processing, health monitoring, photography, security, battery management, AR/VR experiences and customizable user experiences,” they wrote.
“As AI technology evolves the gap between IntelliPhones and traditional smartphones is likely to widen further by offering even more sophisticated and personalized functions driving the desire to upgrade.”
The analysts awarded Apple a ‘Buy’ rating, citing the multi-year upgrade cycle gross margin upside and secular services growth, and a $230 price target.
Apple shares (NASDAQ:AAPL) traded hands at about $192 on Thursday afternoon.